Delhi, India: Investors tried to gradually buy up beaten-down altcoins as the cryptocurrency market mended its wounds from the weekend. The majority of coins, including Bitcoin and Ethereum, however, have continued to haemorrhage.
At 9.30 IST, six of the top ten digital tokens had fallen in value. Terra and Polkadot were up a little, but Cardano was down 6%.
In comparison to the previous day, the global crypto market valuation has dropped nearly 1% to $2.25 trillion. The total crypto market volume, on the other hand, has dropped by 8% to $70.34 billion.
According to Edul Patel, CEO and co-founder of Mudrex, Bitcoin, the most valuable cryptocurrency by market capitalization, saw a sell-off and lingered around $48,000, while ETH also declined. “We might witness a huge dip across altcoins if Ethereum falls below the important support at $4,000,” he warned.
The fundamentals of Bitcoin have improved even further this week, as Miami’s mayor, who is paid in Bitcoin, just revealed that he will be investing a portion of his 401k retirement fund in Bitcoin. According to WazirX Trade Desk, when political leaders demonstrate their faith in Bitcoin, it is more likely to be embraced as an asset class in society.
Proassetz Exchange’s tech perspective
Nothing significant happened in Bitcoin during the last week, as prices stumbled along in their intermediate slump and a modest breakout attempt to $51,600 failed to materialise on Tuesday.
The support level of $47,500 has been challenged several times, but there is a good probability that Bitcoin will break through and go further. On the 4-hour chart, moving averages and momentum oscillators such as the 50- and 100-period ROC are not yet indicating a return of strength.
As a result, traders may want to hold their stop loss at $51,600 and keep their short positions open for a few more days. Only if the downtrend line is broken above $51,600 will demand return in Bitcoin.